UFP Industries (UFP Industries) Interest Coverage

: 36.61 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. UFP Industries's Operating Income for the three months ended in Dec. 2023 was $119 Mil. UFP Industries's Interest Expense for the three months ended in Dec. 2023 was $-3 Mil. UFP Industries's interest coverage for the quarter that ended in Dec. 2023 was 36.61. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. UFP Industries Inc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for UFP Industries's Interest Coverage or its related term are showing as below:

UFPI' s Interest Coverage Range Over the Past 10 Years
Min: 22.02 Med: 32.5 Max: 68.31
Current: 50.35

UFPI's Interest Coverage is ranked better than
85.64% of 202 companies
in the Forest Products industry
Industry Median: 6.175 vs UFPI: 50.35

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

UFP Industries Interest Coverage Historical Data

The historical data trend for UFP Industries's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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UFP Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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28.15

37.14

53.39

68.31

50.35

UFP Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	52.48	59.65	52.65	36.61

Competitive Comparison

For the Lumber & Wood Production subindustry, UFP Industries's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

UFP Industries Interest Coverage Distribution

For the Forest Products industry and Basic Materials sector, UFP Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where UFP Industries's Interest Coverage falls into.

UFP Industries Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

UFP Industries's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, UFP Industries's Interest Expense was $-13 Mil. Its Operating Income was $647 Mil. And its Long-Term Debt & Capital Lease Obligation was $318 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	646.534	/	-12.842
	=	50.35

UFP Industries's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, UFP Industries's Interest Expense was $-3 Mil. Its Operating Income was $119 Mil. And its Long-Term Debt & Capital Lease Obligation was $318 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	118.773	/	-3.244
	=	36.61

The higher the ratio, the stronger the company's Financial Strength is.

UFP Industries (NAS:UFPI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

UFP Industries Interest Coverage Related Terms

Thank you for viewing the detailed overview of UFP Industries's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

UFP Industries (UFP Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » UFP Industries Inc (NAS:UFPI) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

UF3:Germany UF3:Germany

Address

2801 East Beltline Avenue NE, Grand Rapids, MI, USA, 49525

Website

https://www.ufpi.com

UFP Industries Inc is a supplier of lumber to the manufactured housing industry. Today UFP Industries is a multibillion-dollar holding company with subsidiaries around the globe that serve three markets: retail, packaging and construction.

Executives

Patrick M. Benton	officer: XVP UFP Eastern Div - North	2801 EAST BELTLINE NE, GRAND RAPIDS MI 49525
William G Currie	director	2801 EAST BELTINE N E, GRAND RAPIDS MI 49505
Michael R Cole	officer: Chief Financial Officer	2801 EAST BELTLINE, N.E., GRAND RAPIDS MI 49525
Mary E Tuuk	director	625 KENMOOR AVE SE, SUITE 301, GRAND RAPIDS MI 49456
Bruce A Merino	director	3800 WEST CHAPMAN AVE, ORANGE CA 92868
David A. Tutas	officer: Vice President Legal & Secty	2801 EAST BELTLINE NE, GRAND RAPIDS MI 49525
Matthew J Missad	director, officer: Chief Executive Officer	2801 EAST BELTLINE, N.E., GRAND RAPIDS MI 49525
Patrick M Webster	officer: Pres. and Chief Operating Off.	2801 EAST BELTLINE NE, GRAND RAPIDS MI 49525
William Danny Schwartz	officer: Exec. VP, Operations Services	2801 EAST BELTLINE AVE NE, GRAND RAPIDS MI 49525
Allen T Peters	officer: President, UFP Western Div	2801 EAST BELTLINE NE, GRAND RAPIDS MI 49525
Benjamin J. Mclean	director	2801 E BELTLINE AVE NE, GRAND RAPIDS MI 49525
Scott T Bravata	officer: Vice President Administration	2801 EAST BELTLINE NE, GRAND RAPIDS MI 49525
Michael G. Wooldridge	director	2801 EAST BELTLINE NE, GRAND RAPIDS MI 49525
Donald L James	officer: XVP National Sales	2801 EAST BELTLINE, N.E., GRAND RAPIDS MI 49525
Scott A Worthington	officer: President, UFP Industrial, LLC	2801 EAST BELTLINE NE, GRAND RAPIDS MI 49525